FAQs

FAQs

Here you will find set of FAQs.
15 results - showing 1 - 15  
 
Ordering 
 
Jarek BucholcJarek Bucholc   June 24, 2014   1401   0   0   0   0   0
Numbers of unit X 12 Months) : Ex $5,772/4=$1,443, $1,443/12=$120.25
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Jarek BucholcJarek Bucholc   June 24, 2014   1358   0   0   0   0   0
NOI / Debt Service (Principal+Interest)
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Jarek BucholcJarek Bucholc   June 24, 2014   1344   0   0   0   0   0
Use double o7 (Ex $200,000X0.007=$1,400(Monthly)   Than $1,400 x12 = Annual (Always use annual)
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Jarek BucholcJarek Bucholc   June 24, 2014   1353   0   0   0   0   0
NOI x 10 = Offer price  Gross Revenue (Income) X GRM = Purchase price
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Jarek BucholcJarek Bucholc   June 24, 2014   1502   0   0   0   0   0
NOI / Price
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Jarek BucholcJarek Bucholc   June 24, 2014   1468   0   0   0   0   0
 
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Jarek BucholcJarek Bucholc   June 24, 2014   1479   0   0   0   0   0
Price/numbers of unit
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Jarek BucholcJarek Bucholc   June 24, 2014   1365   0   0   0   0   0
Cash Flow(x12) / Down payment x100
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Jarek BucholcJarek Bucholc   June 24, 2014   1600   0   0   0   0   0
NOI - Debt Services 
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Jarek BucholcJarek Bucholc   June 24, 2014   1373   0   0   0   0   0
Gross annual income – Expenses = NOI
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Jarek BucholcJarek Bucholc   February 20, 2014   1347   0   0   0   0   0
Meaning TLC means "tender, loving care." A home that needs TLC will require additional work. Significance A home that requires TLC may or may not be a good investment. You can purchase the home at a bargain price, but you may wind up spending a great deal of money fixing the problems it has. Considerations Have any house you are considering inspected by a professional. A professional home inspector can give you information regarding the repairs a house will need. Potential There can be true potential for houses that need TLC. Sometimes construction is started on a house, but not finished. This type of home would need TLC, but a buyer is essentially getting a newly constructed home. Other Phrase Another phrase that is similar to TLC is "Handyman Special." The two phrases convey the same message. You will need to spend additional time and money on the home.
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Jarek BucholcJarek Bucholc   February 05, 2014   1623   0   0   0   0   0
The summary of the public records relating to the ownership of a particular piece of land. It represents a short legal history of an individual piece of property from the time of the first recorded transfer to present.
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Fractional Ownership
Jarek BucholcJarek Bucholc   January 17, 2014   1258   0   1   0   0   0
Many people ask "what is fractional ownership?" and the closely related question "Is it timeshare? In this article I will attempt to answer these questions. This article is concerned exclusively with the fractional ownership of leisure/luxury assets. However most of the principles would apply equally to the fractional ownership of a practical item (e.g. for business). Definition of Fractional Ownership In its broadest definition, fractional ownership is any arrangement where a group of people (numbering from 2 to 10 or more) share the ownership of an asset and also share certain rights to use the asset. The use of the word "ownership" in the definition therefore excludes timeshare arrangements, where there is no ownership of the underlying asset. Unfortunately however, some so-called fractional ownership schemes are closer to timeshare than they are to true fractional ownership. When investigating whether to purchase a fraction it is essential to know what your relationship to the asset purchased is. The best arrangement is to be identified as the legal joint owner of the asset (or in the case of multiple assets, the owning organization). Types of Fractional Ownership The most cost-effective form is where a group of individuals decide to purchase an asset jointly. They then decide on the exact asset to be purchased, draw up ownership documents (perhaps with the help of a legal firm) and purchase and manage the asset themselves. This avoids the sometimes substantial profit-margin that developers charge when selling fractional properties. This approach does have disadvantages, e.g. the amount...
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What is Cap rate
Jarek BucholcJarek Bucholc   January 10, 2014   1361   0   1   0   0   0
One of the most difficult and perplexing problems for realtors and investors is finding current Gross and Net Income Multipliers and Cap Rates. Determining the value of an income property generally involves establishing either the Gross or Net Income Multipliers, or the Cap Rate according to comparables. There are a number of difficulties: Finding comparables and market information Information relating to a sale of a commercial property is often confidential and difficult to obtain. While the sale price can usually be determined, the Income and Expense Statement, Net Operating Income etc. is often not available, making it difficult to calculate the financial measures. Discovering the underlying motives behind the purchase and adjustments that may have been made by the purchasers. The financial measures are simply ratios that have been derived from the purchase price and the financial figures. They reflect the attitudes and the results of the negotiations between the buyer and the seller, economic conditions etc. In some instances, the purchaser may be strongly motivated by income tax considerations, other times; the motivation may be to move money into another country by an overseas investor. Often, purchasers make adjustments to compensate for particular circumstances relating to the particular property. As an example, if a purchaser estimates that there is $250,000 to be spent immediately on major repairs, then the $250,000 will be deducted from...
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Jarek BucholcJarek Bucholc   January 10, 2014   2194   0   0   0   0   0
Gross Rent Multiplier or "GRM" is the ratio of the price of a real estate investment to its annual rental income before expenses: Gross Rent Multiplier (GRM) = Sale Price / Potential Gross Income The GRM is useful for comparing and selecting investment properties where operating costs can be expected to be uniform across properties. In other words, the more homogeneity of the sales and subject, in terms of age, quality of construction, style, condition, etc., the higher potential there is for accuracy. Historically, the GRM was used primarily for 2-4 unit properties. In this case, a property value may be estimated using the following related formula: Sale Price = Gross Rent Multiplier x Potential Gross Income It is important to beware of the limitations of the gross rent multiplier. For some properties, gross rents may include funds that a landlord must spend on utilities, while the tenants of other buildings may pay for utilities themselves. Various property-specific items are not captured when using the GRM. If one property has higher taxes or higher vacancy than the next, then using the GRM to calculate values will be deceiving. Another caution is if you derive a multiplier from a sale where the rents were at market rates, then it should be applied to your subject's market(forecast) rates. If the above multiplier were applied to your subject's below-market rates, it would yield a below-market value for your subject. The common measure of rental real estate value based on net return rather than gross rental income is the Capitalization Rate or Cap...
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